Singtel in talks over merger of Indonesian service providers

Singapore pay TV and broadband service provider Singtel has confirmed that it is talks with Indonesian broadband provider Telkomsel, in which it holds a 35% stake, and partner service provider PT Telekom about a potential merger of the two broadband businesses.

In a stock exchange announcement, Singtel said that it was in talks “on the integration of Telkom’s fixed broadband business into Telkomsel” and that it believed “this represents a rare opportunity for Telkomsel to enter the high growth fixed broadband market in Indonesia with an industry leader that has some 70% share of market”.

“Around the world, post-pandemic demand for high quality fixed broadband has jumped and this is all the more apparent in an emerging market like Indonesia. Singtel will support this integration if the terms make sense for Telkomsel and our shareholders, and achieve a win-win transaction with our partner Telkom,” it said.

The company said that negotiations were ongoing and that there was no certainty of a transaction.

Telkom is the majority owner in Telkomsel, owning the 65% that Singtel doesn’t hold.

Both Telekom and Telkomsel offer TV as part of their overall service portfolio.

Telkom’s IndiHome TV business offers a range of channels and on-demand services, with DVR and seven-day catch up services. Telkomsel offers a range of streaming video services including its own MAXstream, Amazon Prime Video, Disney+ Hotstar, Netflix, Catchplay+, Viu, Vision+, HBO Go, Lionsgate Play and Zee5.